Natural Gas Prices and Market Trends Explained

Tuesday, April 29^th saw the front-month NYMEX Natural Gas contract open at $3.404, $0.061 cents above Monday’s closing price of $3.343. Recording the intraday high of $3.418 within minutes of the opening bell, Monday’s rally persisted as the contract was oversold. Additionally strong LNG exports provided support. Marking the intraday low of $3.317 at 9:55AM, prices hovered near $3.350 throughout the afternoon. June closed higher on Tuesday at $3.386.

The EIA Natural Gas Storage Report published last Thursday posted an 88 BCF injection to storage for the week ended April 18 – above the market estimate of an 80 BCF injection. Total working gas in storage was reported as 1,934 BCF; 19.8% below this time last year and 2.2% below the five-year average.

As of 7:00AM this morning in Globex, WTI Crude was down $0.440; Natural Gas was down $0.025; Heating Oil was down $0.027; and Gasoline was down $0.017.

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